Adoption of April 30, 2013, Audit Committee Agenda and Approval of the February 21, 2013 Audit Committee Meeting Minutes (Discussion/Action)

III.

Special Issues

A.

Ethical Advocate Statistics (Discussion) Presenter: Peg Koshmider

B.

Aging Report (Discussion) Presenter: Brad Winter

C.

Audit Plan 2013-2014 (Discussion/Action) Presenter: Peg Koshmider

IV.

Consideration for Approval to Convene in Executive Session pursuant to the Open Meetings Act NMSA 1978, (§ 10-15-1 (H) (2)) for the purpose of discussing limited personnel matters in connection with Internal Audit (Action)

II. Adoption of April 30, 2013 Audit Committee Agenda and Approval of the February 21,

2013 Audit Committee Minutes (Discussion/Action)

Chairperson Kathy Korte asked for approval of the April 30, 2013 Audit Committee agenda and approval of the February 21, 2013, Audit Committee minutes. Dr. Peercy motioned and Steven Michael Quezada seconded the motion. All voted in the affirmative to approve the motion.

III. Special Issues

A. Ethical Advocate Statistics (Discussion)

Mr. Brooks mentioned that he did authorize another full time employee for the Audit Department subject to approval by the board. Peg Koshmider explained the Ethical Advocate statistical report to the committee. Ms. Koshmider talked about the graphing report that was requested by Dr. Peercy and Mr. Brooks. It represents the last five years and each color represents types of categories that are emphasized on the complaint. The graphs show a slight increase in complaints this year over last year. Ms. Koshmider states that a very small number of complaints are not valid. Ms. Koshmider explained that the whistleblower report will continue through June 30, 2013, and then we will start a new year.

B. Aging Report (Discussion)

Dr. Brad Winter said only two items were left on the aging report. One item is completed and the nepotism issue will involve the board and the negotiated agreements. This issue will be brought back yearly instead of quarterly until the issue is resolved. Ms. Korte stated issues on the aging report are contractual issues that have to be discussed. Mr. Brooks says this needs to be put on hold and revisited in Policy Committee to get a clear direction from the new board. Dr. Peercy stated that it is very clear that we do not want family members supervising family members, but there are other concerns about family working with family. Dr. Peercy does not know if this issue is listed anywhere in the union contracts. Ms. Korte stated this is something that needs

to be dealt with prior to Mr. Brooks working on negotiated agreements. Mr. Brooks stated this really has to do more with management’s right to transfer than nepotism from the union’s perspective. Ms. Korte feels that the board should have a meeting to look at this prior to union negotiations. Mr. Brooks commended Dr. Winter’s work on the aging report.

C. Audit Plan 2013-2014 (Discussion/Action)

Peg Koshmider explained that the Audit Plan designates the number of hours we have, the number of staff, the different activities performed and how much time we allot to these activities. The deficit hours are decreased significantly due the position increase approved by Mr. Brooks. This report is based on five employees in the department. The last page shows what is in progress and follow ups to previous audits, continuous audits and audits to still be completed. Internal Audit will get requests for audits from a variety of sources. Ms. Korte explained that the personnel increase still needs to be approved by the board. A motion was requested for approval of the audit plan. Dr. Peercy motioned and Mr. Quezada seconded the motion. All voted in the affirmative to pass the audit plan. Motion passed.

IV. Adjourn to Executive Session pursuant to the Open Meetings Act NMSA 1978 (§10-15-1(H) (2)) for the purpose of discussing limited personnel matters in connection with Internal Audit (Discussion/Action)

The committee adjourned to Executive Session pursuant to (§ 10-15-1 (H) (2)) for the purpose of discussing limited personnel matters in connection with Internal Audit including thirty six activity fund audits, three non-compliant activity fund audits and one audit/report. Prior to moving into executive session, Mr. Brooks explained that he invited four principals to attend and answer questions relative to their specific schools.

V. Reconvene to Open Session

VI. Statement of Closure

Ms. Korte stated that the APS Audit Committee met in executive session on April 30, 2013, for the purpose of discussing limited personnel matters in connection with Internal Audit as authorized by the limited personnel matters exception -NMSA 1978,10-15-1(H) (2). The matters discussed in the executive session were limited only to those specified.

VII. Consideration of Acceptance of the Internal Audit Reports discussed in Executive

David Peercy moved for acceptance of the audits/reports a through c. Analee Maestas seconded. Winston Brooks, Steven Michael Quezada, David Peercy, Analee Maestas, Kathy Korte, Michael Reeves, and Susan Wrons voted in the affirmative. The motion passed.